So, I have probably done something foolish. I did have wicd installed but I was thinking that I didn't need wicd because I had wicd-kde-client I removed it. Well that didn't go so well as it removed the the daemon. So I said ah I was a bone head and went to install it again. Now I get this failure. I did some goggling and tried to do:

emerge --oneshot dev-python/setuptools

Though it completes it does not fix the problem. I do remember adding python3 to the use flags to portage or I reversed that, used eselect python to python 2.7 ran python-updater and tried to emerge wicd still fails. So at this point I don't understand how to trouble shoot this. Any pointers would be appreciated.

I have this same problem, and I'm wondering if there is a more accurate solution. I was able to emerge wicd with USE="-nls", but there must be some other problem. Note: re-emerging Babel did not solve the problem for me. I am running a stable system, so I wonder if there is a problem with the build or something else I am missing.